Income Inequality Is a Structural Issue in U.S.: Columbia's Sachs

The video discusses the rise of income inequality in the US from 1945 to 2014, highlighting the decline in well-being and life expectancy for the bottom half of the population. It compares the US to other high-income countries, noting the US as the most unequal. The discussion covers policy solutions, emphasizing the need for fiscal and regulatory changes over monetary policy to address structural issues. The video concludes with a call to learn from other countries' successful policies.

What was the trend in income for the bottom 90% of Americans between 1945 and 1981?

• Their income decreased significantly.

• Their income remained stagnant.

• Their income increased by 176%.

• Their income increased by 77%.

Which country is considered the most unequal among high-income countries?

• United States

• Japan

• Canada

• Germany

What is a key factor that other countries have used to address inequality?

• Decreasing education funding

• Taxing the rich more

• Increasing military expenditure

• Reducing government spending

What is a major limitation of monetary policy in addressing inequality?

• It only benefits the top 1% of earners.

• It is too complex for most economists to understand.

• It can only affect short-term interest rates.

• It cannot address structural issues like monopoly power.

What is one of the structural issues that needs to be addressed to solve inequality?

• Reducing the number of universities

• Decreasing the number of small businesses

• Increasing the number of banks

• Improving union representation

What is the relationship between fiscal and monetary policy according to modern monetary theory?

• They are completely independent of each other.

• They should both be abandoned in favor of new economic theories.

• Fiscal policy should be the primary tool for addressing inequality.

• Monetary policy is more effective than fiscal policy.

What is a common misconception about monetary policy's ability to solve economic problems?

• It can be a magic trick to fix inequality.

• It is ineffective in addressing inflation.

• It is the only tool needed for economic stability.

• It can solve all structural issues.